Circle, Coinbase shares soar as Senate passes landmark stablecoin bill: What it means for crypto’s future

History may be in the making for the crypto world. Shares of Circle and Coinbase surged on Wednesday after the US Senate passed the long-awaited GENIUS Act, a landmark bill aimed at regulating stablecoins and giving the digital dollar its clearest legal status yet.

Circle, issuer of the second-largest stablecoin, ended the day 33.8 per cent higher. Coinbase jumped 16 per cent, while Robinhood, another crypto-friendly platform, rose 4.5 per cent, as reported by Reuters.

GENIUS Act clears Senate, what happens next?

The bipartisan vote marks a watershed moment for crypto oversight in the United States. The GENIUS Act—short for Guaranteed Electronic National Infrastructure for US-dollar Stablecoins-now moves to the Republican-controlled House of Representatives.

If cleared, it will head to President Donald Trump for final approval, likely before the end of summer, as per Reuters.

For an industry long trapped in regulatory ambiguity, this could mean a full reset.

“If signed into law, we expect stablecoins to evolve from the money rail of crypto to the money rail of the internet,” analysts at brokerage Bernstein wrote, as quoted by Reuters.

Why markets cheered the bill

Circle, which went public on the New York Stock Exchange earlier this month, has become one of the biggest beneficiaries of the stablecoin momentum. Its shares, initially priced at $31, closed at $199.59, with another 4.4 per cent jump after hours, according to Reuters.

The company’s flagship token, USDC, co-developed with Coinbase, now boasts a market capitalisation of $61.4 billion, according to data from CoinGecko. The stablecoin also underpins much of Coinbase’s revenue from digital dollars, which surged 51 per cent in the first quarter as USDC hit a new record high.

“This is history in the making,” said Circle CEO Jeremy Allaire on social platform X. “This legislation will drive US economic and national competitiveness for decades to come.”

What the GENIUS Act will change

If passed into law, the GENIUS Act will introduce tough transparency and reserve standards. All stablecoins will need to be fully backed by highly liquid assets such as US dollars or short-term Treasury bills, while issuers will be required to disclose the composition of their reserves publicly each month. Crucially, the bill will bring the sector under formal oversight by US regulators, offering long-awaited legal clarity.

According to Reuters, analysts at Barclays said the bill could become one of two major crypto laws expected to pass in 2025, offering the industry its most comprehensive regulatory base to date.

“While stablecoin demand is already impressive, the new bill can accelerate that demand,” said Andrew Rocco, strategist at Zacks Investment Research, as quoted by Reuters.

Wider crypto sector stands to benefit

Though the law is focused on dollar-pegged tokens, its ripple effects could lift the entire digital asset industry. Analysts at KBW said that providing legal status to stablecoins could act as a strong tailwind for Bitcoin and other major cryptocurrencies.

The legislation may also pave the way for large corporates and traditional banks to develop their own regulated stablecoins.

“This bill lends credibility to the entire digital asset space,” Rocco added, as quoted by Reuters.

The bigger picture: Crypto goes mainstream?

The global stablecoin market is now worth $256 billion, as per CoinGecko. With regulation now moving swiftly through Congress, analysts say the market could grow significantly, especially if stablecoins become embedded into e-commerce, cross-border trade, and digital financial infrastructure.

For Coinbase and Circle, the rally may just be the beginning. But for the broader economy, the GENIUS Act could mark a turning point, the moment the US decided to embrace digital dollars, not resist them.

(With inputs from the agencies)